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In the Garden Cara Delevingne in the Hosts a Garden Party for the Wilderness Window Festival in England

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In the Garden Cara Delevingne in the Hosts a Garden Party for the Wilderness Window Festival in England IN THE GARDEN CARA DELEVINGNE IN THE HOSTS A GARDEN PARTY FOR THE WILDERNESS WINDOW FESTIVAL IN ENGLAND. KATE MARA AND STYLIST PAGE 10 JOHNNY WUJEK TEAM UP COPENHAGEN CHEER TO CREATE WINDOWS AN UPBEAT MOOD PREVAILED AT COPENHAGEN FASHION FOR H&M FOR NEW YORK WEEK AS DANISH FASHION EXPORTS RISE. PAGES 8 AND 9 FASHION WEEK. PAGE 6 RENTS CLIMBING FAST New Retail Mecca: Lower Manhattan By DAVID MOIN NEW YORK — Retailing in lower Manhattan is gain- ing promise and getting pricier. With sweeping transformation hitting the area, lower Manhattan asking rents soared 37.8 percent in the second quarter this year over the same period TUESDAY, AUGUST 12, 2014 ■ $3.00 ■ last year, faster than any other section of the borough, WWD Cushman & Wakefi eld reported Monday. The commercial real estate services fi rm exam- ined 10 Manhattan neighborhoods and concluded that lower Manhattan’s asking rents, in percent increases, stand “head and shoulders above the rest.” Average asking rents for ground-fl oor space in lower Manhattan averaged $346 a square foot in the second quarter of Pretty, 2014, compared to $251 in the same quarter a year ago. The area’s vacancy rate stood at 6.4 percent com- pared to 9.1 percent in the year-ago period. “This central business district is the fourth-largest in the country and it’s under-retailed,” Cushman & Pretty Wakefi eld vice chairman Joanne Podell told WWD. “It’s a rediscovered market. Broadway is the best cor- ridor for street retail. There’s very little availability and rents are skyrocketing.” Cushman & Wakefi eld defi nes lower Manhattan as Pleats extending from Chambers Street to the southern tip Girly pleating is of the island. everywhere for resort, More specifi cally in lower Manhattan, CBRE Group Inc., the commercial real estate services and invest- adding a charming ment fi rm, reported that downtown Broadway saw the touch to even the largest year-over-year average asking rent increase, most sporty shapes. rising by 22.03 percent to $277 a square foot in the sec- ond quarter of this year, from $227 in the year-ago pe- For more, see pages riod. CBRE defi nes downtown Broadway as stretching 4 and 5. from Battery Park to Chambers Street. “In that whole area, we are seeing a rebirth of de- velopment unlike anything we have seen before,” said Andrew Goldberg, vice chairman of retail services, CBRE Group. “There’s roughly a million square feet SEE PAGE 7 Barneys New York Settles Racial Profiling Probe By ARNOLD J. KARR BARNEYS NEW YORK INC. has cleared a major hurdle in its battle to put the “shop and frisk” contro- versy of holiday 2013 behind it. In a settlement with the offi ce of New York State Attorney General Eric Schneiderman following a nine- month investigation, the retailer has agreed to pay $525,000 in costs, fees and penalties and to take a series of remedial actions to settle allegations that it engaged in racial profi ling last year directed at two black shoppers. The settlement wraps up the state’s investigation into the Barneys incidents while an investigation into Macy’s treatment of Rob Brown, an actor in the HBO series “Treme,” is ongoing, according to a spokeswom- From left: Sonia by Sonia Rykiel’s cotton, viscose and an at the Attorney General’s offi ce and a spokesman silk shirt; Sportmax’s cotton crepe and polyester skirt; for Macy’s. Brown fi led suit against the retailer after Alexis Bittar cuff; Rachel Comey shoes. Gabriele Colangelo’s being stopped by the NYPD in June following the pur- cotton poplin shirt; Nonoo’s cotton skirt; ASKA shoes. chase of a $1,350 gold Movado watch for his mother. Although the state matter with Barneys is settled, investigations by the New York City Commission on Human Rights are continuing, according to a spokes- woman for the agency. The commission sought in- formation on the loss-prevention policies of 17 large retailers doing business in New York City and in December subpoenaed documents from Macy’s and Bloomingdale’s, both units of Macy’s Inc., and said it would subpoena documents from Gap Inc.’s Old Navy and Banana Republic brands. In the Barneys case, Trayon Christian fi led suit against the retailer, New York City and the New York Police Department, alleging discrimination, after PHOTO BY GEORGE CHINSEE; STYLED BY MAYTE ALLENDE MODELS: SAM ROMBERGER/IMG AND NOEL/FORD; HAIR BY PASCALE POMA; MAKEUP BY JAVIER ROMERO; FASHION ASSISTANT: ANDREW SHANG; PHOTO ASSISTANT: EMILY TAYLOR EMILY ANDREW SHANG; PHOTO ASSISTANT: ASSISTANT: ROMERO; FASHION JAVIER POMA; MAKEUP BY PASCALE MODELS: SAM ROMBERGER/IMG AND NOEL/FORD; HAIR BY SEE PAGE 6 2 WWD TUESDAY, AUGUST 12, 2014 WWD.COM Kering-Alibaba Latest Fakes Case THE BRIEFING BOX fort, the IACC has worked with credit card companies, IN TODAY’S WWD By ROSEMARY FEITELBERG Western Union and other transaction services to dis- mantle payment operators on sites selling counterfeit WHILE KERING SA and the Alibaba Group have goods. In the past several years, the IACC has “built moved their e-commerce counterfeiting dispute up a reputation for having really good quality control from the courtroom to the conference room, scores in place and mindful due diligence,” he said. Digital Kelsey Van Mook of other companies are also staring down the prob- platforms like Taobao have taken notice of the fact is the subject of lem of online counterfeit sales. that 3,600 to 3,700 payment service providers affecting “Model Call” on The Kering suit, which was filed July 9 in New “hundreds of thousands” of Web sites have been shut WWD.com. York and withdrawn July 24 following construc- down by such law enforcement agencies as the U.S. tive dialogue between the two parties, alleged that Department of Homeland Security, Barchiesi said. Alibaba Group Holding Ltd., China’s biggest e-com- In general, rights holders need to establish online merce company and affiliates, made it possible to roadblocks suitable for different platforms rather sell fakes throughout the world. “Kering and Alibaba than one policy for everyone — that customized tac- MANAGEMENT have agreed to work together in good faith through tic is taken by Taobao, Alibaba and AirExpress, ac- the normal business process on ways to enhance in- cording to Barchiesi. Just last month LVMH Moët MODEL tellectual property protection in a manner that can Hennessy Louis Vuitton and eBay settled out of court NEXT further reduce counterfeiting of Kering brands and their own legal battle over the sale of counterfeit lux- OF ensures a healthy and vibrant e-commerce ecosystem ury goods on eBay, though both companies were short for consumers, merchants, and brand owners alike,” on details about the deal. LVMH declined to comment according to a Kering statement released Monday. Monday in the wake of the Kering-Alibaba news. COURTESY The suit claims trademark infringement against With its initial public offering filing in motion PHOTO such Kering brands as Gucci, Bottega Veneta, with the Securities and Exchange Commission, Balenciaga, Saint Laurent and others. Kering is Alibaba has expressed concern about how the per- present in more than 120 countries, and the com- ception of fakes could damage its reputation. Retail rents in lower Manhattan are rising faster than any other pany’s shares are traded on the Euronext Paris. Although Barchiesi has not been involved with area of the borough, according to Cushman & Wakefield. PAGE 1 Kering executives declined further comment. the Kering-Alibaba negotiations, the idea of col- Alibaba did not respond to requests for comment. laborating to fight counterfeiting is something he Barneys New York has cleared a major hurdle in its battle to Both parties are trying to reach a resolution supports. “Combining resources, expertise and in- put the “shop and frisk” controversy behind it. PAGE 1 within what is believed to be a 90-day time frame. formation only makes good sense,” he said. Should that not happen, the matter could wind up Groupe Clarins has also run up against chal- H&M will feature 10 windows nationwide created by Kate back in court. The Kering-Alibaba showdown start- lenges expanding its digital efforts internationally, Mara and stylist Johnny Wujek. PAGE 6 ed when the French company sued several Alibaba especially in China, where the Web is protected by Group e-commerce platforms and Alipay, as well as the so-called Great China Firewall. Known official- The Biofit bra, formerly a Victoria’s Secret product, is back as other unaffiliated entities. Kering has withdrawn ly as the Golden Shield Project, the government- part of Playboy’s new Biofit x Playboy collection. PAGE 7 the suit against Alibaba, but it still is pursuing legal controlled firewall restricts the dissemination of action against merchants named in the filing that information and impacts e-commerce businesses from abroad, resulting in slower load times and Lisa Jackson in mid-October will open her first LJ Cross store, sold counterfeit goods of its brands. PAGE 7 The plethora of counterfeit goods being sold online compromised site functionality. a 400-square-foot boutique in Manhattan. is only getting worse, according to Robert Barchiesi, Earlier this year Laurent Malaveille, Clarins’ for- president of the International AntiCounterfeiting mer digital executive vice president who now heads An upbeat mood reigned at Copenhagen Fashion Week since Coalition. “With the combination of China’s copycat up its efforts in the Swiss market, noted that “sales Danish fashion companies are expanding their work forces for culture and the insatiable appetite of U.S. consum- are done through the gray market and through un- the first time in five years.
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